SOCAR Turkey Enerji merges assets in Petkim

MOSCOW (MRC) -- SOCAR Turkey Enerji has merged its assets with SOCAR Izmir Petrokimya in the Petkim Petrochemical Complex, as per Azernews.

As a result of the deal, the share of SOCAR Turkey Enerji in this complex reached 61.32%, Turkey's Public Disclosure Platform said on September 23.

Earlier SOCAR Turkey Enerji held indirectly 51% of Petkim Petrochemical Holding through its subsidiary SOCAR Turkey Petrokimya and 10.32% through SOCAR Izmir Petrokimya.

The process of merging of assets of SOCAR Turkey Enerji and its subsidiary SOCAR Izmir Petrokimya took place on 22 September.

Some 38.67% of stake of the petrochemical complex is still in free circulation on the Istanbul Stock Exchange.

The total production volume of the holding amounted to nearly 2.82 million tons in 2013, compared to 3.03 million tons in 2012.

Investments in the development of the complex will amount to USD114 million in 2014. Petkim's share in the Turkish market is expected to hit 40% by 2023.

As MRC informed previously, the production capacity of the Turkish Pektim Petrochemical Holding where SOCAR, Azerbaijan’s state energy company has equity participation will increase from 3.2 million tons to 3.6 million tons in 2014. An increase in production capacity will be possible thanks to the improved capacity of ethylene and purified terephthalic acid (PTA) production enterprises. In particular, the ethylene production enterprise's capacity will increase from current 520,000 tons to 587,000 tons by late 2014. The PTA production capacity will increase from 70,000 tons to 105,000 tons which will require investments worth USD25 million.

Petkim is the leading petrochemical company of Turkey. Specializing in petrochemical manufacturing, the company produces ethylene, polyethylene, polyvinyl chloride, polypropylene and other chemical building blocks for use in the manufacture of plastics, textiles, and other consumer and industrial products.

PS production in Russia rose by 26% from January to August 2014

MOSCOW (MRC) -- Russian converters raised their polystyrene (PS) production from January to August 2014 by 26% year on year, according to MRC ScanPlast report.

Russia produced 251,000 tonnes of general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) over the first eight months of the year.

August PS output was virtually unchanged from July. The overall production totalled 30,600 tonnes of HIPS and GPPS in August versus 29,400 tonnes in July. The resumption of production at Gazprom neftekhim Salavat in the second half of August after a turnaround boosted the last month's production. Gazprom neftekhim Salavat produced about 2,000 tonnes of PS in August.

In its turn, Penoplex has slightly reduced its output of GPPS. The plant produced 3,400 tonnes of GPPS in August versus 3,800 tonnes a month earlier.

You can find more information on the PS production structure by producers, as well as general figures of the market balance in MRC ScanPlast report.

Bayer MaterialScience and bluesign technologies enter into strategic alliance

MOSCOW (MRC) -- Bayer MaterialScience and bluesign technologies are joining forces for a sustainable textile industry and want to advance their initiative globally, as per the company's statement.

The two companies have agreed to enter into a strategic alliance for this purpose. The objective is to ensure safe production processes and working conditions along the entire value chain.

Bluesign technologies is a global leader in evaluating the use of chemicals in the textile industry. The bluesign system defines criteria for chemicals use, including the responsible use of resources, effective hazardous materials management and the elimination of all dangerous substances.

Bayer MaterialScience recently set a milestone in innovative and sustainable textile coating with the introduction of INSQIN, an integrated and complete package for the textile industry based on waterborne polyurethane technology. The package encompasses all aspects of materials development, right through to production by certified manufacturers. This approach redefines the idea of collaboration within the value chain.

"Bayer MaterialScience has been supporting its customers for a long time now in achieving goals of both innovation and sustainability," explains Nicholas Smith, global head of Textile Coating at Bayer MaterialScience. "With our waterborne, totally solvent-free polyurethane raw materials, users currently can greatly improve industrial hygiene, cut energy consumption by 50%, and water use by as much as 95%."

The new partnership with bluesign technologies fits in perfectly with Bayer MaterialScience's comprehensive sustainability concept, which aims to improve people's lives while at the same time conserving resources and minimizing the impact on mankind and the environment.

As MRC wrote before, Bayer MaterialScience expands technology and production by investing in a new ultra-modern technical centre for polyurethane foams and new production plant for coating raw materials. The total investment in both is more than EUR 45 million.

With 2013 sales of EUR 11.2 billion, Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. At the end of 2013, Bayer MaterialScience had 30 production sites and employed approximately 14,300 people around the globe. Bayer MaterialScience is a Bayer Group company.

Ineos plans GBP2.5 billion shale gas giveaway

MOSCOW (MRC) -- Ineos, one of the world’s largest chemicals company, has announced plans to give 6% of its shale gas revenues to homeowners, landowners & communities who live above its Shale gas operations, reported the company on its site.

Ineos anticipates being a major player in the shale gas industry and believes it will give away over GBP2.5 billion over the life of its business.

The sharing of shale gas profits is commonplace in the USA and Ineos believes this will encourage communities to support shale gas production in their neighbourhoods.

Jim Ratcliffe, INEOS founder and chairman says, "We think this is a game changer for Britain. Giving 6% of the revenues to those living above our shale gas operations will give them a real stake in the success of the venture and encourage the development of the whole shale gas industry".

Typically, those living in a shale gas community (approximately 100 square kilometers) would benefit from the output of 200 wells and split GBP375 million between them.

Home and landowners directly above the wells would share GBP250 million. The rest of an Ineos Shale gas community would share GBP125 million between them. Over the lifetime of a single well, home and land owners would get over GBP1.3 million and the community GBP600,000.

Jim Ratcliffe adds, "Giving 6% of revenues to those directly above Shale gas wells means the rewards are fairly shared by everyone. It’s what they do in the USA and we think it is right to do this here. It democratises the Shale gas revolution".

Ineos is one of very few businesses that can use shale gas as both a fuel and a feedstock in its manufacturing plants. It is already spending hundreds of millions of pounds to import large quantities of shale gas from the USA to its Grangemouth facility in Scotland, a necessity as the availability of gas in the North Sea has declined.

As MRC informed previously, in August 2014, Ineos bought rights to explore for shale gas in the area surrounding its Grangemouth refinery complex in Scotland, in the petrochemicals giant's debut move into the fracking industry. The licence covers 127 square miles in the Midland Valley, spanning the Firth of Forth and including Grangemouth, Falkirk and much of Stirling.

Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.

Wacker Polymers to raise prices for dispersions and dispersible powders in Americas

MOSCOW (MRC) -- Wacker Polymers, a division of Wacker Chemie AG, is to raise its prices for VINNAPAS vinyl acetate-ethylene (EVA) and VINNOL ethylene-vinyl chloride-based (EVCL) copolymer dispersions and dispersible powders in the Americas, reported the company on its site.

Effective 1 November, 2014, Wacker will implement a price increase of USD0.03/pound, or as customer contracts allow.

This measure has been necessitated by constantly rising raw material costs, in particular for vinyl acetate monomer (VAM). Additionally, a logistics surcharge of USD0.02/pound will be implemented for all shipments effective 1 November, 2014.

Ongoing high raw material costs, especially for vinyl acetate monomer, a crucial raw material for the manufacturing of Wacker’s dispersions and dispersible powders, necessitate this step. The logistics surcharge is related to increasing freight and distribution cost across the Americas region.

The price adjustment enables Wacker Polymers to continue providing customers a wide-range of innovative quality products and comprehensive technical, sales and customer support services.

Dispersions and dispersible powders of the VINNAPAS and VINNOL brand are applied in a broad variety of industries, ranging from adhesives, construction, nonwovens, paints and coatings to paper, carpet and textiles.

As MRC informed earlier, Wacker Polymersis raised its prices for EVA and EVCL copolymer dispersions of the VINNAPAS and VINNOL brand in the regions Americas and Greater China from 1 August, 2014. Prices were raised by USD0.03/pound in the Americas. In Greater China, prices were increased by CNY300/tonne.

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.